PS Business Parks Inc. announced on Tuesday the pricing of its public offering, which it expects will gross about $103 million before underwriting discounts and offering expenses.
The Glendale real estate investment trust is offering 1.3 million shares of its common stock at a price of $79.25 per share. The offering is expected to close Nov. 7.
The company plans to use the proceeds to repay outstanding debt of about $90 million and for general corporate purposes, which may include the acquisition of commercial properties.
Goldman, Sachs & Co. is acting as the sole underwriter for the offering and PS Business Parks has granted the bank the option to purchase up to an additional 195,000 shares of common stock.
In addition, Public Storage Inc., which shares a founder in billionaire B. Wayne Hughes and chief executive in Ronald Havner, has agreed to separately purchase 950,000 shares at a price of $79.25 a share for proceeds of about $75 million.
PS Business Parks develops and operates multi-tenant flex, office and industrial properties. The company's portfolio totals 29.2 million rentable square feet in eight states
Shares closed down $2.64, or more than 2 percent, to $79.25 on the Nasdaq.